Paneer is an important indigenous product which is obtained by heat treating the milk followed by acid coagulation. It has been a delicacy from ancient times which can be used in the preparation of a variety of culinary dishes and snacks. Paneer is a rich source of animal protein and is characterized with marble white color, sweetish, mildly acidic taste, nutty flavor, spongy body and closely knit and smooth texture. Conventional method of paneer has various limitations viz. wastage of milk solids, variation in quality of paneer, lack of mechanization in manufacturing, etc. Another constraint in large scale manufacturing of paneer is short shelf life. To meet ever growing demand of paneer and to overcome these limitations, myriads of studies has been done by researchers to develop new techniques for manufacturing paneer and to promote its hygienic production. Various technological innovations in paneer manufacture and methods of shelf life extension have been reviewed in this article. Paneer being an established product offers a great prospective for value addition.